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RedIfrit
City gifting can be seen on two levels:
When the AI has 3 cities or less and when the AI has more than 3 cities.
The first case is special as the AI will never refuse the city gift whatsoever the place on the map. This can lead to niche strategies.
The second case means city distance versus the receiver capital has to be taken in consideration.
Calcutta is just too far and the AI was set to avoid abusive city gift that would burden their economy. In other words, I'm not that stupid, indian guy says the crazy black guy with a nice hat.
I saw all cities are reddened. And Shaka has a huge number of cities. I suspect on monarch he is under economical stress. The in-game term (source code) is
financial trouble. That link will take you ito the technical definition of it I took from the code. If the AI is under economical stress, then all city gifts are refused, whatsoever the quality of closeness. A way to help the AI to get out of such financial stress is to gift GPT, but over 6, it is not recommended at all as you are the clear loser in the trade.
At last, remains the second facet of "city gifting", which could be called better as city discharge: city liberation. It is simply a mechanics outside AI decision, so it happens all the time if the conditions are met.
Most important conditions:
Not much of your culture in it.
That city must be closer to the receiver capital than anyone including you.
To make the city discharge, simply do F1 and take that red fist buttom.
City liberation/discharge gives +1.5 per city. After one city, you get +1 (rounded down) and after two, +3. You get the idea. City discharge being outside diplomatic web will NEVER incur any kind of diplo hit like city gifting. For instance, in your game, Shaka is the worst enemy of Washington. Anything you give to Shaka (pure gifts or trades) are counted towards the worst enemy counter (which maxes out at -4). A city worth is really high. Thus if you gave Calcutta, you would have made a really really bad move because to harvest relationship with Shaka, you spit on Washington face. By settling a close city to Shaka, city liberation won't incur any diplo hit.
In the case Shaka is not the worst enemy of anyone, a nifty trick from city discharge is to discharge via the diplo table as a gift. Not only you get +4 for fair trades, but also +1.5 from city liberation.
And that covers all about it.
Thread killed.
BTW, I won't comment of what I have seen in your game. I have lost my eyes from sudden popping and got a sudden Alzheimer.